Here are Thursday’s biggest calls on Wall Street: Credit Suisse reiterates Apple as outperform Credit Suisse said its survey checks show iPhone Pro and Pro Max delivery delays. “Following Apple’s announcement on November 6 that COVID restrictions were limiting supply of iPhone 14 Pro and iPhone 14 Pro Max shipments, we have been tracking estimated delivery dates in the US. Estimates had been relatively consistent, but today we observed a push out by three days and that new orders are no longer possible for arrival before Christmas.” Evercore ISI reiterates Netflix as outperform Evercore said it remains confident in Netflix’s advertising video on-demand service. “We remain confident in our initial forecast that BWA can add 10MM in incremental sub adds and $1-2B in incremental Revenue by ’24, which could generate $1.00-2.00 in incremental EPS, or 8-12% upside to Street EPS estimates.” Credit Suisse downgrades Norwegian to underperform from outperform Credit Suisse said in its double downgrade of the cruise company that it sees better value elsewhere. “We think NCLH is a quality company, that has outperformed materially YTD and we see risk to estimates/valuation vs peers.” Read more about this call here. Morgan Stanley names ServiceNow a a top pick Morgan Stanley switched its top pick to ServiceNow from Salesforce, noting the former has “best in class unit economics.” “Strong positioning for a large market opportunity – the ServiceNow workflow automation platform hits a sweet spot with organizations looking to optimize their business processes and addresses ~$175 billion in market opportunity, where the company has just 4% share today.” Read more about this call here. Deutsche Bank downgrades Target to hold from buy Deutsche downgraded Target after its earnings report on Wednesday and said it has “lower confidence.” “While we dislike moving to the sidelines when a stock is under significant pressure (in reality it is back to where it was a week ago), we are downgrading TGT from Buy to Hold as we have lower confidence that the company can meaningfully recapture margin in 2023 on lingering markdown pressure, particularly in light of comp growth coming under pressure.” Read more about this call here. Piper Sandler upgrades Target to overweight from neutral Piper said Target is still “compelling” despite its latest quarterly report. ” Target has had a difficult 2022, but we believe we are approaching trough EBIT margins and believe at 0.8x 2023 EV/Sales valuation looks compelling.” Canaccord initiates Traeger as buy Canaccord called the grilling company a “premium brand with mass market appeal.” “Today, 35 years after Joe Traeger invented the original wood pellet grill, many consumers simply refer to pellet grills as ‘Traegers.’ ” Canaccord initiates Yeti as buy Canaccord said the lifestyle products company has “staying power.” “We are initiating coverage of YETI with a BUY rating and a $58 PT. YETI was founded in 2006 by Roy and Ryan Seiders, two brothers and avid outdoorsmen from Austin, TX, with a mission to ‘build the cooler we’d use every day if it existed.’ Fast-forward to today, we believe YETI is an iconic global lifestyle brand with staying power.” Gordon Haskett names McDonald’s a top 2023 pick Gordon Haskett said it sees even further share gains for McDonald’s in 2023. “Market share gains delivered globally in Q3 and see MCD with drivers in place to deliver more of the same in 2023.” Goldman Sacks downgrades Whirlpool to neutral from buy Goldman reinstated coverage of Whirlpool and downgraded the stock adding that it’s concerned about a deteriorating macro. “Our view reflects the weakening housing backdrop, combined with normalizing supply chains and promotional activity, which we believe will weigh on volumes and earnings through 2023.” Bank of America reiterates Nvidia as buy Bank of America called Nvidia’s third-quarter earnings results on Wednesday an “inflection” quarter. “NVDA’s Q3 sales of $5.93bn were 2% ahead of consensus on gaming/data center upside, though write-down of China-related inventory dragged down gross margins.” Read more about this call here . Citi downgrades Quest to sell from neutral Citi said it sees cost headwinds for the lab and diagnostic company. “We are downgrading DGX to Sell from Neutral given multiple expansion post-results as we see risk to the LT guide of +4.0-5.0% growth in the base business along with additional cost headwinds.” Read more about this call here. Barclays reiterates Robinhood as underweight Barclays says Robinhood’s monthly metrics are showing “sequential Improvement,” but the firm is sticking with its underweight rating on the stock. “HOOD reported October monthly metrics, MAUs (monthly active users), AUC (assets under custody), net deposits, and options volumes improving, while equity volumes were flat, and margin balances and crypto volumes declined. Barclays reiterates TJX Companies as overweight Barclays said the discount retailer is its “top pick hands down.” ” TJX’s quarter shows evidence of the balance of power shift in Off-Price’s favor. Bank of America reiterates Cisco as buy Bank of America said it’s standing by Cisco after its earnings report on Wednesday. The firm thinks the company can deliver better than expected results for the foreseeable future. “Results were slightly better than expected, mainly a function of backlog drawdown and an environment that is holding up relatively well, despite some slowdown.” UBS downgrades Nio to neutral from buy UBS said in its downgrade of the China electric vehicle company that it’s “cautious on Nio’s efficiency and profitability.” “Despite three new models launched in 2022, Nio’s monthly sales volumes did not show obvious improvement, due to internal cannibalisation and limited differentiation, in our view. Longer term, we remain cautious on Nio’s efficiency and profitability.”
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